05.18.10
The Estee Lauder Companies has announced that it has signed an agreement to acquire Smashbox Beauty Cosmetics, Inc., a privately held, photo studio-inspired prestige cosmetics company based in Los Angeles, CA. The acquisition is expected to close in July 2010, subject to certain conditions, including regulatory approval. While terms of the deal were not disclosed, Estee Lauder said that the transaction is expected to be accretive to earnings in fiscal year 2011, before transaction and integration costs.
The Smashbox brand is a strategic complement to The Estee Lauder Companies' portfolio of leading prestige cosmetic brands. Smashbox's significant presence in assisted open-sell environments and specialty distribution channels will expand The Estee Lauder Companies' product offerings and reach new and younger consumers in these high-growth prestige channels. Additionally, The Estee Lauder Companies will leverage its international experience as it seeks to grow the brand and engage Smashbox's expertise in digital and social media to advance its current capabilities, an important and growing competency for the company.
William P. Lauder, executive chairman of The Estee Lauder Companies, says, "One of the enduring strengths of The Estee Lauder Companies is our ability to identify brands with unique positioning and nurture those brands to accelerate their momentum and realize their full growth potential. The addition of Smashbox to our portfolio continues this 64-year legacy. We expect that with our strong cultural synergies and shared appreciation for family heritage, this will be a wonderful union."
"Smashbox, like The Estee Lauder Companies, is a creativity-driven, consumer-inspired organization with great talent," says Fabrizio Freda, president and CEO of The Estee Lauder Companies. "Adding Smashbox to our portfolio of brands will help strengthen our presence in prestige specialty channels worldwide, increase our product offerings in this important category and enhance our capabilities in digital media and direct response television. We are energized by the promising momentum of Smashbox and believe the brand will help attract new and younger consumers to The Estee Lauder Companies all over the world."
"The Estee Lauder Companies is the ideal home for Smashbox," said Dean Factor, co-founder and CEO, Smashbox Beauty Cosmetics, Inc. "The company possesses the scale and vision to help transition Smashbox into its next phase of growth, and its track record of nurturing and growing prestige brands is second to none. Moreover, we share a similar cultural heritage and dedication to consumer-inspired innovation and creativity. We expect to benefit greatly from The Estee Lauder Companies' extensive knowledge in product development, operational execution, and international marketing and distribution, and we look forward to the next great period of growth for the brand."
The Smashbox brand is a strategic complement to The Estee Lauder Companies' portfolio of leading prestige cosmetic brands. Smashbox's significant presence in assisted open-sell environments and specialty distribution channels will expand The Estee Lauder Companies' product offerings and reach new and younger consumers in these high-growth prestige channels. Additionally, The Estee Lauder Companies will leverage its international experience as it seeks to grow the brand and engage Smashbox's expertise in digital and social media to advance its current capabilities, an important and growing competency for the company.
William P. Lauder, executive chairman of The Estee Lauder Companies, says, "One of the enduring strengths of The Estee Lauder Companies is our ability to identify brands with unique positioning and nurture those brands to accelerate their momentum and realize their full growth potential. The addition of Smashbox to our portfolio continues this 64-year legacy. We expect that with our strong cultural synergies and shared appreciation for family heritage, this will be a wonderful union."
"Smashbox, like The Estee Lauder Companies, is a creativity-driven, consumer-inspired organization with great talent," says Fabrizio Freda, president and CEO of The Estee Lauder Companies. "Adding Smashbox to our portfolio of brands will help strengthen our presence in prestige specialty channels worldwide, increase our product offerings in this important category and enhance our capabilities in digital media and direct response television. We are energized by the promising momentum of Smashbox and believe the brand will help attract new and younger consumers to The Estee Lauder Companies all over the world."
"The Estee Lauder Companies is the ideal home for Smashbox," said Dean Factor, co-founder and CEO, Smashbox Beauty Cosmetics, Inc. "The company possesses the scale and vision to help transition Smashbox into its next phase of growth, and its track record of nurturing and growing prestige brands is second to none. Moreover, we share a similar cultural heritage and dedication to consumer-inspired innovation and creativity. We expect to benefit greatly from The Estee Lauder Companies' extensive knowledge in product development, operational execution, and international marketing and distribution, and we look forward to the next great period of growth for the brand."